Question 1

The quantity of product X supplied can be expected to rise with a fall in:

Accepted Answer

A)  prices of competing products. 
B)  price of X. 
C)  energy-saving technical change. 
D)  input prices. 
A)  prices of competing products. 
B)  price of X. 
C)  energy-saving technical change. 
D)  input prices.

Question 2

Oil refiners can vary the mix of gasoline versus diesel fuel derived from a barrel of oil. If the price of diesel fuel increases relative to the price of gasoline:

Accepted Answer

A)  supply of gasoline will shift to the right. 
B)  supply of gasoline will shift to the left. 
C)  supply of both diesel fuel and gasoline will shift, but in opposite directions. 
D)  supply of diesel fuel will shift to the right. 
A)  supply of gasoline will shift to the right. 
B)  supply of gasoline will shift to the left. 
C)  supply of both diesel fuel and gasoline will shift, but in opposite directions. 
D)  supply of diesel fuel will shift to the right.

Question 3

Holding all else equal, an unnecessary increase in federally-mandated auto safety requirements leads to a decrease in:

Accepted Answer

A)  auto demand. 
B)  the quantity of autos supplied. 
C)  auto supply. 
D)  the quantity of autos demanded. 
A)  auto demand. 
B)  the quantity of autos supplied. 
C)  auto supply. 
D)  the quantity of autos demanded.

Question 4

The equilibrium market price and quantity of beef would increase if:

Accepted Answer

A)  consumers increasingly view beef as unhealthy. 
B)  the price of cattle feed decreased. 
C)  consumer income increased. 
D)  herd sizes fell following a severe drought. 
A)  consumers increasingly view beef as unhealthy. 
B)  the price of cattle feed decreased. 
C)  consumer income increased. 
D)  herd sizes fell following a severe drought.

Question 5

Surplus is a condition of:

Accepted Answer

A)  excess supply. 
B)  a deficiency in supply. 
C)  market equilibrium. 
D)  excess demand. 
A)  excess supply. 
B)  a deficiency in supply. 
C)  market equilibrium. 
D)  excess demand.

Question 6

Supply Curve Analysis. Credible Switches, Inc., is a distributor of generic safety switches used in the washing machines and dryers. Based on an analysis of monthly cost and output data, the company has estimated the following relation between the marginal cost (wholesale cost plus distribution cost per unit) and monthly output:
  
   A. Calculate marginal cost at 400,000, 500,000, and 600,000 units of output.
B. Express output as a function of marginal cost. Calculate the level of output at which MC = $5, $8, and $10.
C. Calculate the profit-maximizing level of output if prices are stable in the industry at $8 per switch and, therefore, P = MR = $8.
D. Again assuming prices are stable in the industry, derive CSI's supply curve for switches. Express price as a function of quantity and quantity as a function of price.

Accepted Answer

The answer of Supply Curve Analysis. Credible Switches, Inc., is...

Question 7

The demand function for a product states the relation between the aggregate quantity demanded and:

Accepted Answer

A)  all factors that influence demand. 
B)  the aggregate quantity supplied. 
C)  consumer utility. 
D)  the market price, holding all the other factors that influence demand constant. 
A)  all factors that influence demand. 
B)  the aggregate quantity supplied. 
C)  consumer utility. 
D)  the market price, holding all the other factors that influence demand constant.

Question 8

Demand for consumption goods and services is:

Accepted Answer

A)  derived demand. 
B)  direct demand. 
C)  product demand. 
D)  utility. 
A)  derived demand. 
B)  direct demand. 
C)  product demand. 
D)  utility.

Question 9

The supply of a product does not depend on:

Accepted Answer

A)  raw material costs. 
B)  wage rates. 
C)  consumer incomes. 
D)  technology. 
A)  raw material costs. 
B)  wage rates. 
C)  consumer incomes. 
D)  technology.

Question 10

Demand Curve Analysis. Papa's Pizza, Ltd., provides delivery and carryout service to the city of South Bend, Indiana. An analysis of the daily demand for pizzas has revealed the following demand relation:
   
where Q is the quantity measured by the number of pizzas per day, P is the price ($), PS is a price index for soda pop (1992 = 100), CSP is the college student population and S, a binary or dummy variable, equals 1 on Friday, Saturday and Sunday, zero otherwise.
A. Determine the demand curve facing Papa's Pizza on Tuesdays if P = $10, PS = 125, and CSP = 35,000, and S = 0.
B. Calculate the quantity demanded and total revenues on Fridays if all price-related variables are as specified above.

Accepted Answer

The quantity of product X supplied can be expected to rise with a fall in:

Oil refiners can vary the mix of gasoline versus diesel fuel derived from a barrel of oil. If the price of diesel fuel increases relative to the price of gasoline:

Holding all else equal, an unnecessary increase in federally-mandated auto safety requirements leads to a decrease in:

The equilibrium market price and quantity of beef would increase if:

Surplus is a condition of:

The demand function for a product states the relation between the aggregate quantity demanded and:

Demand for consumption goods and services is:

The supply of a product does not depend on:

Nature and Scope of Managerial Economics

Economic Optimization

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters

Exam 3: Demand and Supply

The quantity of product X supplied can be expected to rise with a fall in:

Oil refiners can vary the mix of gasoline versus diesel fuel derived from a barrel of oil. If the price of diesel fuel increases relative to the price of gasoline:

Holding all else equal, an unnecessary increase in federally-mandated auto safety requirements leads to a decrease in:

The equilibrium market price and quantity of beef would increase if:

Surplus is a condition of:

The demand function for a product states the relation between the aggregate quantity demanded and:

Demand for consumption goods and services is:

The supply of a product does not depend on:

Nature and Scope of Managerial Economics

Economic Optimization

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters